There was a boundary dispute between Greece and Albania. The two nations took their dispute to the Conference of Ambassadors, which created a commission of British, French, and Italian officials[12] to determine the boundary, which was authorized by the League of Nations to settle the dispute. The Italian General Enrico Tellini became the chairman of the commission. From the outset of the negotiations, the relations between Greece and the commission were negative. Eventually the Greek delegate openly accused Tellini of working in favour of Albania's claims.[13]

On August 27, 1923 the Italian general Enrico Tellini, two of his aides, their interpreter and a chauffeur fell into an ambush and were assassinated by unknown assailants at the border crossing of Kakavia, which is near the town of Ioannina, within Greek territory.[14] The five victims were Enrico Tellini, Major Luigi Corti, Lieutenant Mario Bonacini, Albanian interpreter Thanassi Gheziri and the chauffeur Farnetti Remizio. None of the victims were robbed.[15] The incident occurred close to the disputed border and therefore could have been carried out by either side.[16][17]

According to Italian newspapers and the official statement of the Albanian government, the attack was carried out by Greeks,[18][19] while other sources, including the Greek government and its officials and the Romanian consul in Ioannina, attributed the murder to Albanian bandits.[20][21][22][2][23][24] Also, Reginald Leeper, the British ambassador at Athens on 1945, in a letter to the British Foreign Secretary at April 1945 mention that the Greeks can blame Cham Albanians for the murder of General Tellini.[24]

Upon news of the murder, anti-Greek demonstrations broke out in Italy.[25][26][27] The Greek newspapers were reported by Australian newspapers to "condemn unanimously the Tellini crime, and express friendly sentiments towards Italy. They hope that the Cabinet will give legitimate satisfaction to Italy without going beyond the limits of national dignity."[28]

Italy sent an ultimatum to Greece on August 29, 1923, demanding: (1) a complete official apology at the Italian legation in Athens, (2) a solemn funeral in the Catholic cathedral in Athens in the presence of all the Greek government, (3) military honours for the bodies of the victims, (4) full honours by the Greek fleet to the Italian fleet which would be sent to Piraeus, (5) capital punishment for the guilty, (6) an indemnity of 50 million lire[29][30] within five days of receipt of the note and (7) a strict inquiry, to be carried out quickly with the assistance of the Italian military attaché.[31][32][33] In addition, Italy demanded that Greece must reply to the ultimatum within 24 hours.[34]

Greece replied to Italy on August 30, 1923, accepting four of the demands which with modifications were as follows: (1) The commandant of Piraeus would express the Greek Government's sorrow to the Italian Minister, (2) a memorial service will be held in the presence of members of the government, (3) on the same day a detachment of the guard would salute the Italian flag at the Italian legation, (4) the military would render honors to the remains of the victims when they were transferred to an Italian warship. The other demands were rejected on the ground that they would infringe the sovereignty and honor of Greece.[35][36][37] In addition, the Greek government declared its complete willingness to grant, as a measure of justice, an equitable indemnity to the families of the victims, and that it didn't accept an enquiry in the presence of the Italian military attaché but it would be pleased to accept any assistance which Colonel Perone (the Italian military attaché) might be able to lend by supplying any information likely to facilitate the discovery of the assassins.[38][39]

Mussolini and the Italian cabinet were not satisfied with the reply of the Greek government and declared that it was unacceptable.[40] The Italian press, including the opposition journals, endorsed Mussolini's demands and insisted that Greece must comply without discussion.[41][42][43] Mussolini's decision was received with enthusiasm in all Italy.[44]

On August 31, 1923, a squadron of the Italian Navy bombarded the Greek island of Corfu and landed 5000 [2] or 8000 [7] or 10,000[45] troops.[2] Airplanes aided in the attack.[3][4][5][46] Italian fire was concentrated on the town's Old Fortress, which had long been demilitarized and served as a shelter for refugees from Asia Minor, and on the Cities Police school at the New Fortress, which was also a refugee shelter.[7] The bombardment lasted 15[47] or 30 [48] minutes. As a result of the bombardment 16 civilians were killed, 30 injured and two had limbs amputated,[10] while according to other sources 20 were killed and 32 wounded.[2][11] There were no soldiers reported among the victims, all of whom were refugees and orphans.[2] The majority of those killed were children.[2] The Commissioner of the Save the Children Fund described the bombing as "inhuman and revolting, unjustifiable and unnecessary. [49]

The prefect of Corfu, Petros Evripaios, and Greek officers and officials were arrested by the Italians[50] and detained aboard an Italian warship.[51] The Greek garrison of 150 men[51] did not surrender but retired to the interior of the island.[9][52]

After the landing, the Italian officers were worried that British citizens may have been wounded or killed, and were relieved when they learned that there were no British among the victims.[53]

The residence of the British officer in charge of the police training school, who was away on vacation, was looted by Italian soldiers.[7][54]

The Greek Government proclaimed martial law throughout Greece.[55] The Greek fleet was ordered to retire to the Gulf of Volo to avoid contact with the Italian fleet.[56] In the Athens Cathedral, a solemn memorial service was held for the persons who were killed in the Corfu bombardment, and the bells of all of the churches were tolled continuously. After the service, demonstrations against Italy broke out.[57] All places of amusement were closed as a sign of mourning for the victims of the bombardment.[58]

After the protest of the Italian Minister, the Greek Government suspended for one day the newspaper Eleftheros Typos for characterizing the Italians as "the fugitives of Caporetto" and dismissed the censor for allowing the statement to pass.[58][59] The Greek Government provided a detachment of 30 men to guard the Italian Legation in Athens.[60] Greek newspapers were unanimous in condemning Italy's action.[61]

Italy closed the Corfu canal and the Straits of Otranto to Greek ships.[58] In addition, Italy suspended all Greek shipping companies sailing for her,[58] and ordered Italian ships to boycott Greece,[62] although the Greek ports were open to Italian vessels.[58] Greek steamers were detained in Italian ports and one was seized by a submarine in the straits of Corfu,[58][63] but on September 2, the Italian Ministry of Marine ordered all Greek ships to be released from Italian ports.[64] Anti-Greek demonstrations broke out in Italy again.[65] The Italian government ordered the Italian reservists in London to hold themselves in readiness for army service.[66] The King of Italy, Victor Emmanuel III, returned to Rome from his summer residence immediately.[67] The Italian military attaché who was sent to inquire into the murder of the Italian delegates was recalled by the Italian legation,[58] and Greek journalists were expelled from Italy.[68]

Head of the Near East Relief said that the bombardment were completely unnecessary and unjustified.[72] Italy called the American legation to protest against this statement.[72]

Chairman on the League of Nations commissioning assisting deported women and children, who was eyewitness of the bombardment said: "The crime of Corfu was official murder by a civilized nation...I consider the manner in which Corfu occupied as inhuman."[73]

On September 1, Greece appealed to the League of Nations, but Antonio Salandra, the Italian representative to the League, informed the Council that he had no permission to discuss the crisis.[12] Mussolini refused to co-operate with the League and demanded that the Conference of Ambassadors should deal with the matter.[74][75] Italy assured that will leave the League rather than allow the League to interfere.[76]

Britain favored referring the Corfu matter to the League of Nations, but France opposed such a course of action fearing that it would provide a precedent for the League to become involved in the French occupation of the Ruhr.[77]

With the threat of Mussolini to withdraw from the League and lack of French support the matter went to the Conference of Ambassadors. Italy's prestige was safeguarded and the French were relieved from any linkage between Corfu and the Ruhr at the League of Nations.[77]

On September 8 the Conference of Ambassadors announced to both Greece and Italy, as well as to the League of Nations, the terms upon which the dispute should be settled.

The decision was that:

the Greek Fleet shall render a salute of 21 guns at Piraeus to the Italian Fleet, which will enter the port, followed by French and British warships, which shall be included in the salute,

a funeral service shall be attended by the Greek Cabinet,

military honours shall be rendered to the slain upon embarkation at Preveza,

Greece shall deposit 50,000,000 lire in a Swiss bank as a guarantee,

the highest Greek military authority must apologise to the British, French, and Italian representatives at Athens,

there shall be a Greek inquiry into the murders, which must be supervised by a special international commission presided over by the Japanese Lieutenant-Colonel Shibuya, who was a military attaché of the Japanese embassy, and which must be completed by September 27,

Greece must guarantee the commission's safety and defray its expenses and

the conference requested the Greek Government to communicate its complete acceptance immediately, separately, and simultaneously to the British, French, and Italian representatives at Athens.

In addition, the conference requested the Albanian Government to facilitate the commission's work in Albanian territory.[78]

Both Greece, on September 8,[79] and Italy, on September 10, accepted it.[12] Italy added, however, that she would not evacuate the island until Greece had given full satisfaction.[12]

In Italy everyone was satisfied with the Conference's decision and praised Mussolini.[80]

On September 11 the Greek delegate, Nikolaos Politis, informed the Council that Greece had deposited the 50,000,000 lire in a Swiss bank and on September 15, the Ambassadors Conference informed Mussolini that Italy must evacuate Corfu on the September 27, at the latest.[12][81][12]

On September 26, before the inquiry had finished, the Conference of Ambassadors awarded Italy an indemnity of 50,000,000 lire, on the alleged ground that "the Greek authorities had been guilty of a certain negligence before and after the crime."[12]

In addition, Italy demanded from Greece 1,000,000 lire per day for the cost of the occupation of Corfu[12] and Conference of the Ambassadors replied that Italy reserved the right of recourse to an International Court of Justice in connection with the occupation expenses.[82]

In Greece there was a general depression over the decision, because Italy obtained practically everything she demanded.[83]

Harold Nicolson, a first secretary in the central department of the Foreign Office said: "In response to the successive menaces of M. Mussolini we muzzled the League, we imposed the fine on Greece without evidence of her guilt and without reference to the Hague, and we disbanded the Commission of Enquiry. A settlement was thus achieved." [84]

On September 27 the Italian flag was lowered and the Italian troops evacuated Corfu. The Italian fleet and a Greek destroyer saluted the Italian flag, and when the Greek flag hoisted, the Italian flagship saluted it.[85]

40,000 residents of Corfu welcomed the prefect when he landed, and shouldered him to the prefecture. British and French flags were waved by the crowd which demonstrated enthusiastically in front of the Anglo-French consulates.[86]

The Italian squadron had been ordered to remain anchored till Italy received the 50 million lire.[87]

The 50,000,000 lire deposited in a Swiss bank were at the disposal of The Hague Tribunal and the bank refused to transfer the money to Rome without the authority of the Greek National Bank, which was given on the evening of the same day.[88]

On September 30, the Italian fleet, except one destroyer, departed.[89]

The ulterior motive for the invasion was Corfu's strategic position at the entrance of the Adriatic Sea.[95][96][7]

The crisis was the first major test for the League of Nations but the League failed it.[97] It showed that the League was weak [98] and couldn't settle disputes when a great power confronted a small one.[99] The authority of the League had been openly defied by Italy, a founding member of the League and a permanent member of the Council.[74] The Italian Fascist regime had managed to prevail in its first major international confrontation.[100]

The crisis was also a failure for the policy of Great Britain, which had appeared as the greatest champion of the League during the crisis.[101]

In addition, it showed the purpose and tone of Fascist foreign policy.[99] Italy's invasion of Corfu was Mussolini's most aggressive move of the 1920s.[77] The reputation of Mussolini in Italy was enhanced.[102][103][104]

An Italian Post Office opened on September 11, 1923 in Corfu, issuing a set of 8 Italian stamps overprinted "CORFU" which were placed on sale on the 20th. Three additional stamps overprinted in Greek currency arrived on 24th. The third stamp was 2.40 drachma on 1 lire. The Post Office closed at midday on 26 September 1923, only remaining open to dispatch the morning mail. The office had been open for 15 days.

Three further values arrived on the day the Post Office closed, and were never issued. They eventually became available for sale at the postal ministry in Rome. Many used copies of these stamps have forged postmarks, but it is known that the Corfu cancel was applied to hundreds of stamps before the Post Office closed.[105][106]

^ ab"American Scores Bombardment Of Corfu Civilians.". Meriden Morning Record. 4 September 1923. p. 1. "the number killed reached twenty, nine of these were killed outright and eleven died at the hospital. Thirty-two wounded are now in hospitals and there were perhaps fifty slightly wounded."

^Italy in the last fifteen hundred years: a concise history By Reinhold Schumann page 298 ([1])

^"GREEK PLOT ALLEGED.". Kalgoorlie Miner. WA: National Library of Australia. 31 August 1923. p. 5. Retrieved 16 March 2013. "The Italian newspapers declare that the murders were the result of deliberate ambuscade by Greeks—natives of Epirus, and will leave an indelible stain. The Albanian Legation in London has received a telegram from Tirana affirming that Greek armed bands were the assassins"

^"ALBANIANS BLAMED.". The Daily News. Perth: National Library of Australia. 31 August 1923. p. 7 Edition: THIRD EDITION. Retrieved 16 March 2013. "The Governor-General of Epirus, the Greek Delegation, and the Roumanian Consul in Janina, attribute the Telini crime to Albanians."

^"MURDERED ITALIANS.". The Recorder. Port Pirie, SA: National Library of Australia. 17 September 1923. p. 1. Retrieved 16 March 2013. "The Exchange correspondent at Athens says the Court of Inquiry into the Janiria murders puts forward a suggestion that the Italian delegates were killed as an act of vengeance because during the Italian occupation of Vairona Colonel Tellini as Governor had several Albanians shot, including notables."

^"Italians Incensed.". The West Australian. Perth: National Library of Australia. 1 September 1924. p. 11. Retrieved 16 March 2013. "Demonstrations against the Greeks are reported from all parts of Italy."

^"GREEK FLAG BURNED.". The West Australian. Perth: National Library of Australia. 1 September 1923. p. 11. Retrieved 16 March 2013. " Anti-Greek demonstrations continue in the Italian towns, notably in Trieste, where Nationalists and Fascists burned the Greek flag in the public square, and threw it into the sea. In Milan there were noisy scenes in front of the Greek Consulate, and demonstrators carried off a shield which bore a replica of the Greek arms."

^"ITALIAN DEMANDS A MINIMUM.". The Recorder. Port Pirie, SA: National Library of Australia. 1 September 1923. p. 1. Retrieved 16 March 2013. "Anti-Greek demonstrations are reported from all over Italy, and the police have been reinforced."

^"Greek Press Views.". The West Australian. Perth: National Library of Australia. 1 September 1923. p. 11. Retrieved 1 May 2013. "The Greek newspapers condemn unanimously the Telini crime, and express friendly sentiments towards Italy. They hope that the Cabinet will give legitimate satisfaction to Italy without going beyond the limits of national dignity."

^GCSE History Notes(PDF). p. 19. "...blamed the Greeks and demanded 50 million lire in compensation"

^"ITALY AND AFRICA.". The Sydney Morning Herald. National Library of Australia. 29 October 1935. p. 10. Retrieved 17 March 2013. "Two days later the Italian Minister at Athens forwarded to the Greek Government the following demands: An unreserved official apology, the holding of a solemn memorial service in the Catholic cathedral at Athens all the members of the Government to be present, the paying of honours to the Italian flag by the Greek navy, a drastic Inquiry into the assassination in the presence of the Royal Italian military attaché, capital punishment for the authors of the crime, military honours for the bodies of the victims, and an indemnity of 50,000,000 lire within five days of the presentation of the note."

^"GREECE WILL INDEMNIFY BEREAVED.". The Recorder. Port Pirie, SA: National Library of Australia. 1 September 1923. p. 1. Retrieved 17 March 2013. "The Government is ready to express profound sorrow and indemnify the bereaved families, but is not disposed to accept Italy's humiliating conditions."

^"Another European War Possible.". The Advertiser. Adelaide: National Library of Australia. 3 September 1923. p. 9. Retrieved 10 April 2013."The reply adds that it is impossible to accept the demands of capital punishment for those responsible and an indemnity of 500,000 or an enquiry in the presence of the Italian military attaché, but Greece will willingly accept Italian assistance in carrying out the investigations. The Greek Government are prepared to accord a just indemnity to the families of the victims."

^"WARLIKE ACT COMMITTED BY ITALY.". The Mail. Adelaide: National Library of Australia. 1 September 1923. p. 1. Retrieved 17 March 2013. "Signor Mussolini (the Italian Premier) read the Greek reply to the Italian ultimatum to Cabinet, which declared that it was, unacceptable."

^"TELL WHY CORFU WAS OCCUPIED". Spokane Daily Chronicle. Spokane, Washington. 1 September 1923. p. 12. "Mussolini's decision that the Greek reply could not be accepted, was received everywhere with greatest enthusiasm"

^"THE CORFU BOMBARDMENT.". The Register. Adelaide: National Library of Australia. 5 September 1923. p. 9. Retrieved 18 April 2013."The first Italian officer who landed walked along, mopping his brow, to the spot where English and American nurses were attending the wounded. The officer asked, "Were any Britons killed or wounded? "No." was the reply, whereupon he heaved a sigh of relief and said, "Thank God!""

^"MOURNING IN ATHENS.". The Daily News. Perth: National Library of Australia. 5 September 1923. p. 7 Edition: THIRD EDITION. Retrieved 25 March 2013. "...on Monday a solemn memorial service was held in the cathedral for 12 persons who were killed in the Corfu bombardment. The bells of all of the churches were tolled continuously, and incense was burned in many houses as a sign of mourning. Crowds paraded the streets after the service, crying, Down with Italy,' but the police dispersed them."

^"Newspaper Suspended.". The West Australian. Perth: National Library of Australia. 4 September 1923. p. 7. Retrieved 3 May 2013." A Greek newspaper has been suspended for the day for styling the Italians: "The fugitives of Carporetto." The Censor has been dismissed for allowing the publication of the insult."

^"WAR LIKE ACT COMMITTED BY ITALY.". The Mail. Adelaide: National Library of Australia. 1 September 1923. p. 1. Retrieved 23 April 2013. "A Greek steamer about to depart from Brindisi homeward was stopped and remains in the harbor"

^"RELEASE OF GREEK, SHIPS.". The Daily News. Perth: National Library of Australia. 3 September 1923. p. 9 Edition: THIRD EDITION. Retrieved 21 April 2013. "According to a Rome message, the Ministry of Marine has ordered all Greek ships to be allowed to leave Italian ports without hindrance."

^"GREEK "ARMS" TORN DOWN.". The Brisbane Courier. National Library of Australia. 3 September 1923. p. 7. Retrieved 19 April 2013. "During an anti-Greek demonstration at Milan the crowd tore down the Coat of Arms from the Greek Consulate."

^"ITALIANS IN LONDON.". The Brisbane Courier. National Library of Australia. 3 September 1923. p. 7. Retrieved 19 April 2013. "Italian reservists in London have received orders from the secretary of their Legation to hold themselves in readiness for army service during the next five days, when it will be known whether they are wanted or not."

^"KING RETURNING TO ROME.". The Examiner. Launceston, Tas.: National Library of Australia. 3 September 1923. p. 5 Edition: DAILY. Retrieved 21 April 2013."A Rome message says that the King is returning to Rome from his summer residence immediately."

^"ANOTHER BALKAN WAR THREATENED.". The Recorder. Port Pirie, SA: National Library of Australia. 8 September 1923. p. 1. Retrieved 26 June 2013. "Reports from Turkey show that a section of opinion is already urging Kemal Pasha to seize the opportunity to invade Western Thrace."

^"Ambassadors' Decisions.". The Examiner. Launceston, Tas.: National Library of Australia. 11 September 1923. p. 5 Edition: DAILY. Retrieved 17 March 2013. "Greece has replied to the Note of the conference of Ambassadors, announcing a readiness to conform with the conference's decision."

^"EVACUATION OF CORFU.". Singleton Argus. NSW: National Library of Australia. 29 September 1923. p. 5. Retrieved 20 March 2013. "The award of the Ambassadors' Conference with respect to Janina has been confirmed, and the matter is declared to be settled, except that Italy reserves the right of recourse to an International Court of Justice in connection with the occupa- tion expenses."

^"PRACTICALLY UNOBSERVED.". The Brisbane Courier. National Library of Australia. 29 September 1923. p. 7. Retrieved 17 March 2013. "The news of the evacuation at Corfu was almost unobserved owing to the general depression through Italy obtaining practically, everything she demanded."

^Yearwood, Peter J. "'Consistently with Honour': Great Britain, the League of Nations and the Corfu Crisis of 1923." Journal of Contemporary History 21, no. 4 (1986): 559-79. http://www.jstor.org/stable/260586.

^"THE EVACUATION.". The Brisbane Courier. National Library of Australia. 29 September 1923. p. 7. Retrieved 20 March 2013. "The Italian flag was lowered and salutes from the Italian fleet and a Greek destroyer. The Italian flagship saluted the Greek flag when it was hoisted."

^"FLEET WAITS FOR PAYMENT.". Kalgoorlie Miner. WA: National Library of Australia. 29 September 1923. p. 5. Retrieved 17 March 2013. "The Italians have not completed the evacuation of Corfu. Although the troops have left the Italian squadron has been ordered to remain till Italy actually receives the fifty million lire, payable by Greece."

^"EVACUATION OF CORFU.". Kalgoorlie Miner. WA: National Library of Australia. 1 October 1923. p. 5. Retrieved 20 March 2013. "The return of the Italian fleet to Corfu was due to the fact that the fifty million lire deposited in a Swiss bank were at the disposal of The Hague Tribunal and the bank refused to transfer the money to Rome without the authority of the Greek National Bank, which was given yesterday evening."

^"EVACUATION OF CORFU.". Western Argus. Kalgoorlie, WA: National Library of Australia. 2 October 1923. p. 21. Retrieved 20 March 2013. "Corfu, Sept. 30. The Italian fleet, all except one destroyer, has now departed."

^Neville, Peter (December 2003). Mussolini. Routledge. p. 93. ISBN978-0415249904."There is no doubt that Mussolini's occupation of Corfu had widespread support at home."

^Thomopoulos, Elaine (December 2011). The History of Greece. Greenwood. p. 109. ISBN978-0313375118. "Incensed by Italy's act of aggression, the Corfiots stopped playing Italian operas at their theater."

^Municipality of Corfu Official Website. (2008) History of the municipal theatre via the Internet ArchiveAfter 1923, when Italy bombarded Corfu, the Italian operas ceased to appear in Corfu. From that time on Greek operas were called under the direction of the maestros Dionisius Lavrangas, Alexandros Kiparissis, Stefanos Valtetsiotis and others. Since then, dramatic plays were also staged and artists like Marika Kotopouli and Pelos Katselis appeared in Corfu, as well as many operettas of the time"

^"The Brisbane Courier.". The Brisbane Courier. National Library of Australia. 11 September 1923. p. 4. Retrieved 31 January 2013."... because there is not the slightest doubt that the real cause of trouble is that old disturbing "Adriatic question " which has been the cause of many Balkan troubles, and is likely to be the cause of many more."

^Yearwood, Peter J. "'Consistently with Honour': Great Britain, the League of Nations and the Corfu Crisis of 1923." Journal of Contemporary History 21, no. 4 (1986): 559-79. http://www.jstor.org/stable/260586.

^Yearwood, Peter J. "'Consistently with Honour': Great Britain, the League of Nations and the Corfu Crisis of 1923." Journal of Contemporary History 21, no. 4 (1986): 559-79. http://www.jstor.org/stable/260586.